10 Cheap Stocks to Buy Under $10

These hot stocks offer so much more than a low share price

Cheap Stocks to Buy Under $10 – Exco Resources (XCO)

Exco Resources (XCO) is an onshore oil and natural gas play focused mainly on shale operations. Its focus is on using horizontal drilling to extract gas from shale formations in east Texas, north Louisiana, Appalachia and the Permian Basin in west Texas.

XCO is one of many oil and gas small-caps that could be great long-term buys considering the recent underperformance of the energy sector and the hopes of a recovery in 2014. But beware that, at least in the short-term, the momentum is pretty disappointing.

Shares of Exco stock have fallen over 20% in the last year thanks to weaker natural gas prices. In fact, even after the so-called Polar Vortex chilled middle America this month, fuel prices have remained weak.

But the good news is that Exco is the right size for these lean times and should be able to bounce back in 2014. For instance, in fiscal 2012, EXCO reduced drilling rigs from 24 to just 5, and laid off more than 60% of its contractors and one-sixth of its full-time workers. All in all, it slashed capital expenses by more than a billion dollars. The restructuring hit the company hard, but has put it back on track.

Plus, EXCO is another high-yield pick on this list of cheap stocks. It offers a 4% dividend to tide you over as you wait for a recovery in energy prices, demand or both.